- Jun 13, 2002
- 637
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Of course it's possible. But why would you do a fha loan and not a conventional loan if have enough for a 20% DP?
Home Buying & Real Estate Thread
- Thread in 'General' Thread starter Started by TYE_The Time Traveler,
- Start date
Of course it's possible. But why would you do a fha loan and not a conventional loan if have enough for a 20% DP?
- Nov 6, 2012
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My thoughts as well. Maybe due to lower credit score requirements ?
- Dec 28, 2004
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How I got out of PMI could vary from company to company.
I had a conventional loan and got out of the PMI last year pretty easily. (if you have been wanting to refinance, this is the time to look into that.)
But for my loan company, you had to bring the loan to value (believe that was term) to 78%. The reason why it was 78% and not 80% like most would imagine was due to me attempting to remove the PMI before 2 years had past from the origination of my loan.
If you are not looking to refinance, call your company (to find out their rules) and see if they make it necessary to get an appraisal. Gettting an appraisal is actually in your favor considering your home value has likely went up from the purchase price. They will use the appraisal value to determine your 'new' loan to value ratio and tell you how much you would need to pay (to bring the LTV to 78%) to have the PMI removed.
I say look into refinancing now because my dumb but paid $3000 to get my PMI removed, THEN refinanced (which would have removed the PMI) and I could have essentially held onto to more money. I didn't lose because the $3000 went to my equity, but it was unnecessary at the time, causing me to spend more money to obtain my goal.
I had a conventional loan and got out of the PMI last year pretty easily. (if you have been wanting to refinance, this is the time to look into that.)
But for my loan company, you had to bring the loan to value (believe that was term) to 78%. The reason why it was 78% and not 80% like most would imagine was due to me attempting to remove the PMI before 2 years had past from the origination of my loan.
If you are not looking to refinance, call your company (to find out their rules) and see if they make it necessary to get an appraisal. Gettting an appraisal is actually in your favor considering your home value has likely went up from the purchase price. They will use the appraisal value to determine your 'new' loan to value ratio and tell you how much you would need to pay (to bring the LTV to 78%) to have the PMI removed.
I say look into refinancing now because my dumb but paid $3000 to get my PMI removed, THEN refinanced (which would have removed the PMI) and I could have essentially held onto to more money. I didn't lose because the $3000 went to my equity, but it was unnecessary at the time, causing me to spend more money to obtain my goal.
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- Nov 6, 2012
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He's talking about FHA loans I thought.
- Mar 31, 2006
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I didn't notice you were from NYC. I closed on my 2 fam in Queens in October. Where are you looking to buy a home ? If you need any help, PM me.
- Jul 16, 2002
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Nice! Congrats on your recent closing! I'm looking to buy in either Queens (preferably) or The Bronx
x). I'll be sure to PM you if I have any specific questions.
- Mar 31, 2006
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Nice! Congrats on your recent closing! I'm looking to buy in either Queens (preferably) or The Bronx
We moved from Ridgewood to Lindenwood. Hipsters took over Ridgewood and prices are just insane. I would of loved to stay in the area. I'm hoping we can move back in a few years.
- Dec 28, 2004
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- Mar 26, 2015
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Can anyone recommend where to find leases for tenants? To LLC. Or not?
- Mar 14, 2006
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That's a key that gets glossed over. People might have the cash for the DP but their credit isn't good enough for a good rate so going FHA makes sense. We all know how credit scores can be.
- Feb 12, 2014
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I grew up in Chandler, so can speak to it a little bit. But wouldn't know specifics of real estate (due to living there when I was younger) but am familiar with the area and neighborhoods, etc. PM me if you want some help.
- Dec 24, 2001
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I never said I'd do FHA; I said 5% down on a conventional loan. Thanks guys.
- Dec 24, 2001
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THATS WHAT I WAS GETTING AT. THIS THREAD IS GOSPEL FOR REAL ESTATE . LOOKING TO BUY NEXT YEAR IN WESTCHESTER CTY. GONNA HAVE A LOT OF QUESTIONS FELLAS.
- Jun 13, 2002
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- Jul 29, 2012
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Instead I think it would be better to put it toward getting your loans' principal to 20%.
I put down 3.5% on my home using FHA loan, but got out of PMI and went conventional 2 years later. Bought the Duplex for 440k, total down about 28k w/closing costs(3.5% FHA loan). I got solar panels for both units costing 30k (took out a HERO program loan that allows you to put the loan on the property tax permanently starting a year later.) I got rid of my grass and put in drought tolerant landscaping (doing my part here in Cali). Also put up a small brick wall/fence, and new electric water heater (5k, 20 year warranty).
When I went to refinance the appraiser appraised my place worth 500k, and I was down to 404k having paid off my loan. I paid the extra 4k of principal and got to 20% conventional loan, gave me 400$+ discount to my monthly payment.
P.S. There's a federal tax credit (named ITC) for 30% of the cost of the solar panels goes back to me in rebate, so 10k minimum coming to me when I file taxes.
Invest in your home rather than paying some mortgage broker/bank.
I put down 3.5% on my home using FHA loan, but got out of PMI and went conventional 2 years later. Bought the Duplex for 440k, total down about 28k w/closing costs(3.5% FHA loan). I got solar panels for both units costing 30k (took out a HERO program loan that allows you to put the loan on the property tax permanently starting a year later.) I got rid of my grass and put in drought tolerant landscaping (doing my part here in Cali). Also put up a small brick wall/fence, and new electric water heater (5k, 20 year warranty).
When I went to refinance the appraiser appraised my place worth 500k, and I was down to 404k having paid off my loan. I paid the extra 4k of principal and got to 20% conventional loan, gave me 400$+ discount to my monthly payment.
P.S. There's a federal tax credit (named ITC) for 30% of the cost of the solar panels goes back to me in rebate, so 10k minimum coming to me when I file taxes.
Invest in your home rather than paying some mortgage broker/bank.
- Mar 31, 2006
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I definitely wanna do solar panels to boost the value of my crib. I'm probably gonna do it at the end of the summer since my tenants lease ends at the end of October and I can raise her rent to cover the payment. I can't wait to get out of PMI.
- Jul 27, 2012
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Better do research on the panels before committing. I dunno if things have changed or dependent on the solar company, but I remember trying to sell a house here in SD where the owner had to pay for the panels in full before they could sell their house. I dunno if you plan on keeping your place for a long time or not, but just check on it.
- Nov 6, 2012
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Yup I am not sold on solar panels being an easy house sell at all, especially if you are leasing.
I pulled out of buying solar panels after I did more research.
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- Feb 17, 2008
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how did you end up paying 28k dp? 3.5% is around 16-17K.
- May 26, 2003
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Is ATL the only city with an issue of New Builds being complete utter garbage? I hear so many stories about all the homes they are rushing to build are all terrible. I assume this may be a nation wide thing with developers trying to get easy money.
- Jul 29, 2012
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With anything, do your due diligence. The program I am in (HERO) puts the solar panel loan on the property taxes, if I sell the duplex, it goes to the new buyer for them to pay off my panels.
The place appraised for 435k, they said come out of pocket with additional 5k or no deal. There were 6 other buyers ready, I paid the extra + closing costs.
- Jul 27, 2012
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My latest flip in Imperial Beach is finally done and on the market. 4 bedroom / 2.5 bath 3061 sq ft. Added a 4th bedroom to take advantage of the huge sq ft and to increase the asking price. Has an ocean view from the upstairs back balcony and just 5 blocks from the beach. Hardwood floors throughout, calcutta quartz countertops, brand new stainless steel appliances, iPad station...took us 3 months to complete due to city permits but loved how everything turned out..especially the master bath.
- Jul 27, 2012
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Can't believe I was able to finish 2 projects in a week. This is by far my favorite flip so far. Just from getting the property at a steal and being able to complete this in less than 5 weeks especially w/ the amount of work that needed to be done. 3 bed/2 bath 1887 sq ft. If you saw the before pics i posted, the front of the house had chimney because the previous owner decided to convert the garage into a living space for some unknown reason. So we converted it back to garage...spent a pretty penny on the garage door and even epoxy'd the garage floor for an added touch. The aluminum garage door is insulated so technically you can turn the garage into a room because there's central heat/air vents in there. Pool was refinished and the views are 
g Glad we spent the money by doing the whole row of glass to show off the views and did a new fence.
Opened up the kitchen by knocking a couple walls down. Calcutta quartz counters and island, subway tile, new appliances, hardwood floors throughout, iPad station, honeywell thermostat...even painted the front door a blue color for an added pop. Just put it on the market today and tons of people have already came by the house to check it out. Hopefully this one goes quick!
g Glad we spent the money by doing the whole row of glass to show off the views and did a new fence.Opened up the kitchen by knocking a couple walls down. Calcutta quartz counters and island, subway tile, new appliances, hardwood floors throughout, iPad station, honeywell thermostat...even painted the front door a blue color for an added pop. Just put it on the market today and tons of people have already came by the house to check it out. Hopefully this one goes quick!
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Los Angeles
formerly bright nikes
- Apr 11, 2004
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gorgeous bro
- Apr 12, 2011
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Great work
If you dont mine me asking how many homes did you flip last year?
Either way keep us updated on your new projects
If you dont mine me asking how many homes did you flip last year?
Either way keep us updated on your new projects
